The Government of Sierra Leone on Tuesday signed the Pepel Port and Pepel – Tonkolili Railway development, expansion and management lease agreement with ARISE Integrated Industrial Platforms Ltd.
According to the Minister of Mines and Mineral Resources, Timothy Kabba, this agreement is part of the bigger reforms in the mining sector, where the government intends to open the space for more players to participate.
He furthered that ARISE IIP was a credible company with a reputation for developing and managing infrastructure in Africa. “This agreement is taking a government asset from monopoly to be more accessible”, he added.
Minister Kabba stated that the revival of the mining operation required significant investment in infrastructure for the country to fully benefit from the growth of its mining output.
This lease agreement will give a 10% Free Carry to the Government of Sierra Leone and provide access to rail and port facilities to other bulk mineral producers in the northern corridor.
This project will expand economic activities by providing jobs for Sierra Leoneans and enable passengers’ locomotion from Tonkolili through Bombali to the Port Loko District.
Through this agreement, the company will also introduce passenger rail services allowing communities for better mobility and trade, increase mineral export with an additional 20 million MT, 10% dividend to Government, surface rent to landowners, annual royalties PAYE and other taxes.
In his statement the Minister of Finance, Sheku Ahmed Fantamadi Bangura, stated that ARISE IIP was a sector specialist firm with a proven record across Africa in managing infrastructure. He stated that they were signing this agreement after several consultations, due diligence and approval from the Cabinet with concurrence from the Ministry of Finance.
Sheku Ahmed Fantamadi Bangura averred that this agreement was in the best interest of the Government and people of Sierra Leone and that after the signing, the agreement would be taken to Parliament for ratification.
The business plan, financial model and pre-feasibility studies are estimating a total investment of 476 million dollars covering the refurbishment of the Pepel Tonkolili Railway work, Pepel Port, Railway connectivity to Marampa mines, the introduction of passenger rail services and the rail connection to Guinea.
Signing for ARISE IIP the Managing Director, Jesper Harring Boll, stated that ARISE was a conceiver, developer and operator of high-added-value infrastructure committed to making Africa thrive with an investment of several billion dollars and a good track record across many countries in Africa like Benin, Togo, Gabon, Cote d’Ivoire, Tchad, RoC, DRC or Rwanda.
He continued that, “ARISE IIP identifies gaps in African countries that unlock value and create new industries to create local transformation and maximize production, efficiency and cost to generate growth and local value addition”.